Cloud computing has evolved as a cost-effective, easy-to-use, elastic and scalable computing paradigm to transform today’s business models. The concept of edge computing models and business digitisation are going to become a key component for many IoT initiatives. Real edge computing will enable new business models. Learn more below about Edge Computing Business Model Value Chain.

The business model of edge computing

The main focus of edge computing target customers includes at least the following areas:

  1. Save bandwidth cost (eg: building materials machinery, packaging equipment, etc.)
  2. High computing power requirements for local data (such as: water treatment, environmental monitoring, etc.)
  3. Sensitive to data processing delay (eg rail transit, petrochemical, etc.)
  4. Strong requirements for data security (such as pharmaceuticals, energy, etc.)

From the perspective of business models, due to the diverse architecture or deployment forms of 5G edge computing (in the form of industrial computers, edge controllers, edge gateways, or high-performance servers).

Also, we have diverse deployment locations (in enterprise production sites, parks, and operators) Network access, local computer rooms, or provincial, municipal and county convergence points, etc.).

There are various investment and construction methods (self-built, agent-built, buyout or lease, etc.), and diverse application scenarios and needs. Therefore, the business model of 5G edge computing is also flexible and diverse.

Infrastructure Resource Model

In the past, operators mostly opened services to customers after completing equipment construction. 5G edge computing is different. Customers can build their own edge computing equipment and then access the 5G network.

On the other hand, they can use the 5G network through a third-party agent construction, or directly Buy out or lease 5G edge computing equipment. Therefore, operators can flexibly provide services in the form of one-off payments, monthly subscriptions, annual leases, joint operations, and revenue sharing based on differences in edge computing construction and access to 5G networks.

Capability Open Model

Because edge computing is closer to the customer side, and customers have different application requirements, providing capability open services in the form of APIs can better meet customers’ needs for application development with low latency, high traffic, and high computing power.

When providing API interface services, different charging models can be adopted according to the different nature of the API: APIs with basic functions can be used for free, APIs with larger granular capabilities, or scenario-based or solution-based APIs can be used. Monthly, annual subscription, license buyout, etc.

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The API interface can be open to enterprise customers or to third parties, and its sales can be in the form of monthly rent, annual fee, one-time fee or revenue sharing.

In addition, customers can be divided into different levels, and different levels have different fees. For example, basic-level customers can access for free, but only a limited amount of APIs; high-level customers can use most of the APIs, and the extra part will be charged separately; bulk-level customers can use all APIs.

It is worth mentioning that when opening capabilities, we need to pay attention to providing complete capabilities interface development supporting services. For example, provide development tools for data collection, process design, application testing and optimization involved in development, provide technical exchanges and self-service in the form of communities or forums, and provide case introductions in a variety of ways.

Application Provision Mode

As the saying goes, interlaced is like a mountain. Even if the same is a manufacturing industry, because the production, management and sales methods of various industries are very different, the required applications and services are often completely different.

It is difficult to provide applications that meet customer needs without going deep into the industry. Whether it is the management and control application within the enterprise or the cloud computing application outside the enterprise, it has been difficult for operators to intervene in the past.

5G edge computing is close to the customer side, which provides operators with an opportunity to unite partners and provide customers with near-end applications. Application sales can be divided into two types: general-purpose type and customized type. They can be sold according to monthly rent, annual rent, or license buyout.

Sales according to Quantitative Indicators

The characteristics of 5G edge computing are local computing power, low latency, high bandwidth, and security. This is why customers prefer edge computing. During the sales process, according to quantifiable indicators, such as computing power, latency, bandwidth or QoS, etc., different levels are used for charging.

Integration with other Telecommunication Services

Generally speaking, companies need more than 5G edge computing services. Operators can consider integrating basic network services, corporate communications services, personal and government and corporate customer services, and package them with 5G edge computing services.

In addition, operators can also unite with equipment manufacturers such as sensors and video surveillance at the terminal level of the Internet of Things to provide customers with a package of 5G edge computing overall solutions.

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Flexible and diverse business models can stimulate the vitality of the development of 5G edge computing, and at the same time help operators tap new profit growth points and develop a mutually beneficial and win-win industrial ecosystem.

If operators do not work hard to play a role in the edge computing economy, it will be difficult for operators to become effective participants in the 5G ecosystem.

Bottom Line: In summary, you can Enable 5G and IoT enterprise services with edge computing Business Model from this blog. Also, you can Gain first-mover advantage and grab new business opportunities. Edge computing strategy. Ensure 5G success. Read our new posts. Enable IoT services. Unlock the value of 5G. Edge computing explained.